HomeMy WebLinkAbout13-Human Resources CITY OF SAN BERNARDINO —REQUEST FOR COUNCIL ACTION ORIGINAL
From: Linn Livingston, Director SUBJECT: RESOLUTION OF THE CITY
of Human Resources OF SAN BERNARDINO RESCINDING
RESOLUTION NO. 2010-284 AND
Dept: Human Resources APPROVING A MEMORANDUM OF
UNDERSTANDING BETWEEN THE
Date: December 13, 2010 CITY AND THE SAN BERNARDINO
CITY FIRE MANAGEMENT
ASSOCIATION REGARDING BUDGET
CONCESSIONS.
M/CC Meeting Date: December 20, 2010
Synopsis of Previous Council Action:
On August 16, 2010, the Mayor and Common Council approved Resolution No. 2010-284
amending Resolution No. 2007-345, Section 2, C, Insurance (Medical, Dental, Vision),
Subsection 1; Section 2, I, PERS, Safety Employees, Subsection 3; and Resolution No.
2009-71, Section 2, B, Compensation, Subsection 1; Section 2, X, Post Employment
Health Plan; between the City and Fire Management employees.
On June 7, 2010, the Mayor and Common Council approved Resolution No. 2010-138
recognizing the San Bernardino City Fire Management Association (FMA) as the majority
representative for the Fire Management Unit.
Recommended Motion:
1. Rescind Resolution No. 2010-284.
2. Adopt Resolution.
4W Signature
Contact person: Linn Livingston Phone: 384-5161
Supporting data attached: Yes Ward:
FUNDING REQUIREMENTS:
Amount: Savings of$114,400 (FY 2010-11) and $114,400 (FY 2011-12)
Source: (Acct. No.)
(Acct. Description)
Finance:
Council Notes: il
Agenda Item No. �3
CITY OF SAN BERNARDINO — REQUEST FOR COUNCIL ACTION
Staff Report
Subiect:
Resolution of the City of San Bernardino rescinding Resolution No. 2010-284 and approving a
Memorandum of Understanding between the City and the San Bernardino City Fire Management
Association regarding budget concessions.
Backeround:
The City Negotiations Team and Members of the San Bernardino City Fire Management
Association (FMA) met to discuss ways the members could continue to assist with the City's
financial deficit for the FY 2010-11 and FY 2011-12 fiscal years' budgets. On August 16, 2010, the
Mayor and Common Council approved Resolution No. 2010-284 authorizing the City to reduce its
health care contributions for FMA employees. The Federal Government recently enacted a health
care reform which allows health care providers a method to increase health care premiums on
contract agencies if the reduction in contributions is more than 5%. If an agency decreases employer
contributions by more than 5%, the agency loses its "Grandfather" status which, in turn, allows the
health care provider an opportunity to increase monthly health care premiums. The City was
notified by its current vendors that if it were no longer eligible for "Grandfather" status, health care
premiums would increase for 2011. Resolution No. 2010-284 authorized a reduction of more than
70%. The Human Resources Department met and conferred with FMA and both have agreed to
rescind Resolution No. 2010-284 and utilize a different methodology to assist with the City's
budget deficit.
FMA has agreed to employee concessions equaling approximately a 10% reduction in salary and
implementation of a second tier retirement formula (3% at 55) for new employees. Additionally,
FMA agreed to reduce concession hours from six hours of leave time per week to three hours,
which will provide additional savings to the City. It is recommended that the following actions be
approved:
➢ Effective December 1, 2010, all Fire Management employees agree to a deduction of
$790 per month (post-tax)towards City non-healthcare benefit programs.
➢ All Fire Management employees voluntarily turned in their City-paid cell phones, which
provided additional savings for the City.
➢ Effective upon agreement with all safety groups, the City of San Bernardino will amend
the current PERS contract to provide a two-tier retirement benefit of 3% at 55 for all
newly hired employees in the group hired on or after January 1, 2011.
In return for the above employee concessions, it is recommended that the following actions be
adopted:
➢ Effective December 7, 2010, and continuing through June 30, 2012, all Fire
Management employees shall accrue three hours of leave time per week. This leave time
shall have no expiration date or cash value.
➢ The City will amend the Post Employment Health Plan agreement to allow holiday hours
to be included in calculations.
The City and FMA agree that if the economy were to improve prior to June 30, 2012, the following
"trigger"language would be followed:
The City agrees to restore the ten percent (10%) employee concession prior to
June 30, 2012 if sales tax, utility tax, and property tax totals restore to the FY 07-
08 levels or if the City of San Bernardino receives a Federal or State bailout or
other windfall that can be applied to the General Fund with no limitations equal to
or greater than the amount of savings achieved through the employee concessions.
Financial Impact:
This will result in a savings of$114,400 (FY 2010-11) and$114,400(FY 2011-12). This savings
has already been included in the FY 2010-11 budget.
Recommendations:
1. Rescind Resolution No. 2010-284.
2. Adopt Resolution.
1 Resolution No. COPY
2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
3 BERNARDINO RESCINDING RESOLUTION NO. 2010-284 AND APPROVING
MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY AND THE SAN
4 BERNARDINO CITY FIRE MANAGEMENT ASSOCIATION REGARDING BUDGE
CONCESSIONS.
5
BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CIT
6 OF SAN BERNARDINO AS FOLLOWS:
7 SECTION 1: Resolution No. 2010-284, which was approved on August 16, 2010, be
8 rescinded in its entirety; and
9 SECTION 2: The City Manager of the City of San Bernardino and the Director o
10
Human Resources are hereby authorized and directed to execute on behalf of said City
11
Memorandum of Understanding with the San Bernardino City Fire Management Association
12
regarding budget concessions, a copy of which is attached hereto and incorporated herein as
13
Exhibit"A."
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1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO RESCINDING RESOLUTION NO.2010-284 AND APPROVING A
2 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY AND THE SAN
3 BERNARDINO CITY FIRE MANAGEMENT ASSOCIATION REGARDING BUDGET
CONCESSIONS.
4
5 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor an
6 the Common Council of the City of San Bernardino at a meeting thereof, held
7 on day of 2010, by the following vote, to wit:
s
9 COUNCILMEMBERS: AYES NAYES ABSTAIN ABSENT
MARQUEZ
10
DESJARDINS
11 BRINKER
12 SHORETT
13 KELLEY
JOHNSON
14
MCCAMMACK
15
16
17 Rachel G. Clark, City Clerk
is
The foregoing resolution is hereby approved this day of 2010.
19
20 Patrick J. Morris,Mayor
City of San Bernardino
21 Approved as to form:
22 JAMES F. PENMAN,
23 City Attorney
24 By:
25 S:Agmda Items/Reso.FMA.Fw1ough.2010 Ne
—2—
Exhibit A
MEMORANDUM OF UNDERSTANDING BETWEEN THE
CITY OF SAN BERNARDINO AND THE SAN BERNARDINO
CITY FIRE MANAGEMENT ASSOCIATION
REGARDING BUDGET CONCESSIONS
This Memorandum of Understanding is entered into by the City of San
Bernardino ("CITY") and the San Bernardino City Fire Management Association
("FMA")pursuant to and subject to Government Code Sections 3500 et seq. as follows:
WHEREAS, the CITY is seeking concessions from its employee organizations in
an effort to address a budget deficit;
WHEREAS, the CITY acknowledges the FMA is the recognized employee
organization, which within the scope of representation, represents the bargaining unit
composed of all Fire Department management-level employees;
WHEREAS, representatives of the CITY and representatives of the FMA have
met and conferred in good faith, exchanged proposals, and have reached agreement
regarding employee concessions equating approximately a 10%reduction in salary;
NOW, THEREFORE, the CITY and the FMA hereby agree to the following
budget concessions as follows:
r 1. Budget Concessions:
a. Effective December 1, 2010, all Fire Management employees agree to a
deduction of $790 per month (post-tax) towards City non-healthcare
benefit programs.
b. Effective upon agreement with all safety groups, the City of San
Bernardino will amend the current Ca1PERS contract to provide a two-tier
retirement benefit of 3% at 55 for all newly hired employees in the group
hired on or after January 1, 2011.
C. The City agrees to participate in the Post Employment Health Plan
(PEHP) in accordance with the terms and conditions of the Plan's
Participation Agreement. Specifically,the City will establish the following
PEHP programs for Fire Safety Management employees:
➢ 401 (a)Accumulated Benefit Conversion Program
➢ Universal Reimbursement Account
➢ Insurance Premium Reimbursement Account
Effective December 7, 2010, the City agrees to amend the Post
Employment Health Plan (PEHP), in accordance with the terms and
conditions of the Plan's Participation Agreement, to include Holiday
hours.
1
Exhibit A
2. Budget Concessions Leave:
In return for assisting the City during a severe budget deficit, effective December
�.r 7, 2010, and continuing through June 30, 2012, all Fire Management employees
shall accrue three hours of leave time per week. This leave time shall have no
expiration date or cash value. In all cases, leave use shall be arranged for and used
according to established departmental policy.
3. Restoration of Budget Concessions:
The CITY agrees to restore the ten percent (10%) employee concession prior to
December 31, 2012, if sales tax, utility tax, and property tax totals restore to the
FY 07-08 levels or if the City of San Bernardino receives a Federal or State
bailout or other windfall that can be applied to the General Fund with no
limitations equal to or greater than the amount of savings achieved through the
employee concessions.
4. All other terms of Resolution Nos. 2007-345 and 2009-71 not modified by this
agreement shall continue in full force and effect. In the event of a conflict
between the terms of this agreement and the aforesaid Resolutions, the terms of
this agreement shall control.
5. Term of Memorandum of Understanding:
This Memorandum of Understanding will remain in effect through June 30, 2012.
Date:
Charles McNeely, City Manager San Bernardino City Fire
Management Association(SBFMA)
Linn Livingston, Director of
Human Resources
ATTEST:
Rachel Clark, City Clerk
Ap roved as to Form:
-
Pis F. Penman
Attorney
S:Agenda Items/MOU between City and FMA 12-20-10
2
MEMORANDUM OF UNDERSTANDING BETWEEN THE
CITY OF SAN BERNARDINO AND THE SAN BERNARDINO
CITY FIRE MANAGEMENT ASSOCIATION
REGARDING BUDGET CONCESSIONS
This Memorandum of Understanding is entered into by the City of San
Bernardino ("CTI'Y") and the San Bernardino City Fire Management Association
CTMA")pursuant to and subject to Government Code Sections 3500 et seq. as follows:
WHEREAS, the CITY is seeking concessions from its employee organizations in
an effort to address a budget deficit;
WHEREAS, the CITY acknowledges the FMA is the recognized employee
organization, which within the scope of representation, represents the bargaining unit
composed of all Fire Department management-level employees;
WHEREAS, representatives of the CITY and representatives of the FMA have
met and conferred in good faith, exchanged proposals, and have reached agreement
regarding employee concessions equating approximately a 10%reduction in salary;
NOW, THEREFORE, the CITY and the FMA hereby agree to the following
budget concessions as follows:
1. Budget Concessions:
a. Effective December 1, 2010, all Fire Management employees agree to a
deduction of $790 per month (post-tax) towards City non-healthcare
benefit programs.
b. Effective upon agreement with all safety groups, the City of San
Bernardino will amend the current CaIPERS contract to provide a two-tier
retirement benefit of 3% at 55 for all newly hired employees in the group
hired on or after January 1,2011.
C. The City agrees to participate in the Post Employment Health Plan
(PEHP) in accordance with the terms and conditions of the Plan's
Participation Agreement. Specifically,the City will establish the following
PEHP programs for Fire Safety Management employees:
➢ 401 (a)Accumulated Benefit Conversion Program
➢ Universal Reimbursement Account
➢ Insurance Premium Reimbursement Account
Effective December 7, 2010, the City agrees to amend the Post
Employment Health Plan (PEHP), in accordance with the terms and
conditions of the Plan's Participation Agreement, to include Holiday
hours.
1
2. Budget Concessions Leave:
In return for assisting the City during a severe budget deficit, effective December
7, 2010, and continuing through June 30, 2012, all Fire Management employees
shall accrue three hours of leave time per week. This leave time shall have no
expiration date or cash value. In all cases, leave use shall be arranged for and used
according to established departmental policy.
3. Restoration of Budget Concessions:
The CITY agrees to restore the ten percent (10%) employee concession prior to
December 31, 2012, if sales tax, utility tax, and property tax totals restore to the
FY 07-08 levels or if the City of San Bernardino receives a Federal or State
bailout or other windfall that can be applied to the General Fund with no
limitations equal to or greater than the amount of savings achieved through the
employee concessions.
4. All other terms of Resolution Nos. 2007-345 and 2009-71 not modified by this
agreement shall continue in full force and effect. In the event of a conflict
between the terms of this agreement and the aforesaid Resolutions, the terms of
this agreement shall control.
5. Term of Memorandum of Understanding:
This Memorandum of Understanding will remain in effect through June 30, 2012.
Date:
Charles McNeely, City Manager San Bernardino City Fire
Management Association(SBFMA)
Linn Livingston,Director of
Human Resources
ATTEST:
Rachel Clark, City Clerk
Approved as to Form:
J s F. Penman
i Attorney
SAAgenda Items/MOU bet v City end FMA 12-20-10
2